https://www.asiatimes.com/2019/07/article/no-clear-solution-for-seoul-as-japan-tightens-exports/
JULY 15, 2019
s South Korean alarm mounts over Tokyo’s restrictions on the export of key display and chip components to the country, a business lobby group has sent a plea to Japan to tone down the emerging trade conflict, while the head of the nation’s flagship company has ordered subordinates to draw up contingency plans.
In a letter sent to Japan’s Ministry of Economy, Trade and Industry, the Federation of Korean Industries (FKI) warned on Monday that Japan’s extended trade curbs would disrupt production at Korean companies and pose a threat to global supply chains.
Meanwhile, Lee Jae-yong, vice chairman and de facto head of Samsung Electronics, called on his staff to prepare contingency plans at an executive meeting on Saturday, a day after his return from Japan. Lee had flown to Japan to secure the supply of necessary semiconductor materials, and, despite being ambushed at the airport by reporters on his return, remained tightlipped about what – if anything – his trip had achieved.
Wartime forced labor dispute
Against this backdrop, a report published by a Korean government think tank, the Korea Institute of Economic Policy, or KIEP, indicated that the Japanese government’s restrictions of key semiconductor material exports are likely to remain in place unless Seoul shifts its stance on a Korean Supreme Court ruling on wartime forced labor in Japanese companies.
Early this year, the court ordered the seizure of Japanese companies’ assets in the case. Tokyo was furious. It insists the issue was resolved in 1965, when, as part of a diplomatic normalization treaty, Japan paid US$800 million in grants and soft loans to South Korea. Seoul, at the time, offered no money to victims, using the cash for economic development instead.
Samsung appears to agree with the KIEP study. “At an executive meeting, Lee told participants to prepare a contingency plan as Japanese export restrictions could last long and go further,” an industry source told Asia Times. Though some media said that Lee had succeeded in securing a supply of critical materials for a few months, the source told Asia Times, “Do not put too much credibility in that report.”
“The fundamental reason for the Japanese government moving to tighten restrictions on exports to Korea is its dissatisfaction with the Supreme Court’s ruling on forced labor. This situation is expected to last long unless the Korean government changes in its attitude,” Kim Gyu-pan, a researcher and the author of the KIEP report said.
Semiconductors
But that “does not mean that concessions on historical issues are the best thing to do,” Kim told Asia Times. “It is necessary to induce arbitration from the US and China, by highlighting that a disruption in Korean semiconductor production will also damage IT companies in the US and China.”
Kim said: “Although it may take time, WTO litigation is also a way to deal with this issue. For a WTO complaint, the Korean government must monitor corporate damage closely.”
Still, according to KIEP, the Japanese government argues that the strengthened export regulations are not a violation of WTO agreements. Tokyo claims that it has altered its export system. The Japanese government also claimed that if it had targeted the Korean semiconductor sector, it would have chosen more critical items – such as silicon wafers.
In retaliation, Seoul is reportedly mulling a ban on semiconductor exports to Japan and an imposition of tariffs on Japanese imports. However, these steps may be tricky to implement as they could escalate into an all-out trade war.
The FKI, in its letter to Tokyo, warned that economic damage would not be one-way. The FKI anticipated that bilateral trade – put at US$85 billion in 2018 – and the number of Korean travelers to Japan, which reached 7.54 million last year, would decline if the dispute continues.
Japan intensifies attack
But Tokyo may not be finished. It looks set to exclude Korea from a “white list” of countries favored in trade, on security grounds, next month, according to the KIEP report. Countries on the list can import strategically important Japanese products quickly and easily. Those that are not, could face delays.
“While the strengthening of export regulations on July 1 specified three semiconductor and display materials, excluding Korean [items] from the white list is very comprehensive, so uncertainties for Korean industry are amplified,” Kim said. “The export regulation currently mentioned is likely to include high-tech chemicals that can be used for military purposes and electronic components, such as secondary ion batteries for vehicles, and some machine tools.”
https://www.meti.go.jp/english/press/2019/0701_001.html
Up until now, Korea requests 100, Japan has been giving 100.
Korea reports 70 for using industrial goods but doesn't report 30.
Therefore, Japan regulates for giving just the necessary amount.
As a rule, no application for each export was required for three years, but from 4 days it was necessary to apply for each shipment. According to a government official, the Korean side has been asked to respond to "inappropriate cases" several times in the past three years, but there has been no reaction.
This is a security issue.
It is the result that Korea ignored Japan's request.
About forced worker
https://commenttokorea.blogspot.com/2019/06/about-forced-labor.html
Asian Times has the impression that "Japan is bad".
Please stop reporting twisting facts.
I think that those who drop the image of Japan are fools who do not pursue the truth, Koreans, communists, and racists.
JULY 15, 2019
s South Korean alarm mounts over Tokyo’s restrictions on the export of key display and chip components to the country, a business lobby group has sent a plea to Japan to tone down the emerging trade conflict, while the head of the nation’s flagship company has ordered subordinates to draw up contingency plans.
In a letter sent to Japan’s Ministry of Economy, Trade and Industry, the Federation of Korean Industries (FKI) warned on Monday that Japan’s extended trade curbs would disrupt production at Korean companies and pose a threat to global supply chains.
Meanwhile, Lee Jae-yong, vice chairman and de facto head of Samsung Electronics, called on his staff to prepare contingency plans at an executive meeting on Saturday, a day after his return from Japan. Lee had flown to Japan to secure the supply of necessary semiconductor materials, and, despite being ambushed at the airport by reporters on his return, remained tightlipped about what – if anything – his trip had achieved.
Wartime forced labor dispute
Against this backdrop, a report published by a Korean government think tank, the Korea Institute of Economic Policy, or KIEP, indicated that the Japanese government’s restrictions of key semiconductor material exports are likely to remain in place unless Seoul shifts its stance on a Korean Supreme Court ruling on wartime forced labor in Japanese companies.
Early this year, the court ordered the seizure of Japanese companies’ assets in the case. Tokyo was furious. It insists the issue was resolved in 1965, when, as part of a diplomatic normalization treaty, Japan paid US$800 million in grants and soft loans to South Korea. Seoul, at the time, offered no money to victims, using the cash for economic development instead.
Samsung appears to agree with the KIEP study. “At an executive meeting, Lee told participants to prepare a contingency plan as Japanese export restrictions could last long and go further,” an industry source told Asia Times. Though some media said that Lee had succeeded in securing a supply of critical materials for a few months, the source told Asia Times, “Do not put too much credibility in that report.”
“The fundamental reason for the Japanese government moving to tighten restrictions on exports to Korea is its dissatisfaction with the Supreme Court’s ruling on forced labor. This situation is expected to last long unless the Korean government changes in its attitude,” Kim Gyu-pan, a researcher and the author of the KIEP report said.
Semiconductors
But that “does not mean that concessions on historical issues are the best thing to do,” Kim told Asia Times. “It is necessary to induce arbitration from the US and China, by highlighting that a disruption in Korean semiconductor production will also damage IT companies in the US and China.”
Kim said: “Although it may take time, WTO litigation is also a way to deal with this issue. For a WTO complaint, the Korean government must monitor corporate damage closely.”
Still, according to KIEP, the Japanese government argues that the strengthened export regulations are not a violation of WTO agreements. Tokyo claims that it has altered its export system. The Japanese government also claimed that if it had targeted the Korean semiconductor sector, it would have chosen more critical items – such as silicon wafers.
In retaliation, Seoul is reportedly mulling a ban on semiconductor exports to Japan and an imposition of tariffs on Japanese imports. However, these steps may be tricky to implement as they could escalate into an all-out trade war.
The FKI, in its letter to Tokyo, warned that economic damage would not be one-way. The FKI anticipated that bilateral trade – put at US$85 billion in 2018 – and the number of Korean travelers to Japan, which reached 7.54 million last year, would decline if the dispute continues.
Japan intensifies attack
But Tokyo may not be finished. It looks set to exclude Korea from a “white list” of countries favored in trade, on security grounds, next month, according to the KIEP report. Countries on the list can import strategically important Japanese products quickly and easily. Those that are not, could face delays.
“While the strengthening of export regulations on July 1 specified three semiconductor and display materials, excluding Korean [items] from the white list is very comprehensive, so uncertainties for Korean industry are amplified,” Kim said. “The export regulation currently mentioned is likely to include high-tech chemicals that can be used for military purposes and electronic components, such as secondary ion batteries for vehicles, and some machine tools.”
https://www.meti.go.jp/english/press/2019/0701_001.html
Up until now, Korea requests 100, Japan has been giving 100.
Korea reports 70 for using industrial goods but doesn't report 30.
Therefore, Japan regulates for giving just the necessary amount.
As a rule, no application for each export was required for three years, but from 4 days it was necessary to apply for each shipment. According to a government official, the Korean side has been asked to respond to "inappropriate cases" several times in the past three years, but there has been no reaction.
This is a security issue.
It is the result that Korea ignored Japan's request.
About forced worker
https://commenttokorea.blogspot.com/2019/06/about-forced-labor.html
Asian Times has the impression that "Japan is bad".
Please stop reporting twisting facts.
I think that those who drop the image of Japan are fools who do not pursue the truth, Koreans, communists, and racists.
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